Analyzing the GBP/USD currency pair on a four-hour timeframe. According to wave theory, the currency is forming a significant corrective wave (B), which takes the form of a triple zigzag W-X-Y-X-Z. Let's pay attention to the last wave Z, which is currently under construction.
The ascending active wave Z is likely to take the form of a double zigzag [W]-[X]-[Y]. Two sub-waves [W]-[X] have already been completed, and the last sub-wave [Y] is in the development stage.
There is a high probability that wave [Y] will take the form of a standard zigzag (A)-(B)-(C), as shown on the chart. The market is moving within the first impulse wave (A). Most likely, inside impulse (A), correction 4 has been completed. Thus, a price increase in sub-wave 5 to the high area of 1.279 is possible in the near future.
The entire wave [Y] is likely to constitute 76.4% on the Fibonacci extension from wave [W].
Trading recommendations: Buy at 1.266, take profit at 1.279.
